The formula for NAV is simple: the total market value of a mutual fund's underlying securities divided by its number of shares outstanding. The NAV reflects the current market prices of the securities in the fund and can change daily due to market fluctuations.

NAV = (Assets – Liabilities) / Total number of outstanding shares

Here, Assets = market value of the mutual fund's underlying securities, and Liabilities = any debts or fees associated with the fund.

It is important to note that the mutual fund NAV is close to equal to the book value of the fund, but not always equal. The book value is the net asset value per share at the end of a fiscal year, while the NAV is an estimate of current market values.

For example, the book value of a fund may be ₹100 at the end of the fiscal year, but its NAV could be anywhere from ₹95 to ₹105 due to market fluctuations.

By monitoring changes in a mutual fund's NAV over time, investors can make more informed decisions about their investments. They can also compare different funds and find out which ones offer the best value for their money.

The NAV is an important measure of a mutual fund's performance. It reflects the current market prices of the securities in the fund and can change daily as markets fluctuate. By monitoring changes in a fund's NAV over time, investors can get a better understanding of its performance compared to other funds and decide if it is still aligned with their goals.

In addition, knowing a fund's NAV history can help investors compare different funds and find out which ones offer the best value for their money. This knowledge can help them make more informed decisions about where they should invest their money.

Lastly, understanding the latest mutual fund NAVs can ensure that investors stay up-to-date on new investment opportunities and take advantage of potential gains.

Overall, the NAV of a mutual fund is an important measure for investors to track and consider when making investment decisions.

The NAV of a mutual fund is declared daily because it reflects the current market prices of the securities in the fund and can change daily due to market fluctuations.

In addition, many mutual funds are actively managed, which means that their portfolio managers may buy or sell securities at any time. These transactions affect the fund's NAV as well, so it needs to be updated regularly.

Finally, declaring a mutual fund's NAV on a daily basis ensures that investors stay up-to-date on new investment opportunities and take advantage of potential gains.

The mutual fund NAV is different from the stock prices of individual stocks in a portfolio. The NAV reflects the total market value of a mutual fund's underlying securities, while the stock price reflects only the current market value of one security.

For example, if a mutual fund has four stocks in its portfolio and all have risen in price over the past week, the NAV of that mutual fund would likely increase as well. However, if just one of those stocks had dropped in price during that same time period, then the overall NAV may still increase but at a slower rate than it would have without that decrease.

Therefore, investors should keep an eye on both their funds' NAVs and individual stock prices when monitoring changes in their portfolios.